Summary of the General Discussion on “Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA”

Abstract

October 01 2016 Summary of the General Discussion on “Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA” Author and Article Information Online Issn: 1536-0083 Print Issn: 1535-3516 © 2016 by the Earth Institute at Columbia University and the Massachusetts Institute of Technology2016Massachusetts Institute of Technology Asian Economic Papers (2016) 15 (3): 169. https://doi.org/10.1162/ASEP_a_00466 Cite Icon Cite Permissions Share Icon Share Facebook Twitter LinkedIn MailTo Views Icon Views Article contents Figures & tables Video Audio Supplementary Data Peer Review Search Site Citation Summary of the General Discussion on “Gains from Trade Liberalization between Heterogeneous Countries: Implications for the Korea–Japan FTA”. Asian Economic Papers 2016; 15 (3): 169. doi: https://doi.org/10.1162/ASEP_a_00466 Download citation file: Ris (Zotero) Reference Manager EasyBib Bookends Mendeley Papers EndNote RefWorks BibTex toolbar search Search Dropdown Menu toolbar search search input Search input auto suggest filter your search All ContentAll JournalsAsian Economic Papers Search Advanced Search Many participants discussed possible extensions of the model. Some argued that important aspects were left out, which might be problematic from a policy perspective. Others argued that this type of modeling needs to abstract away certain factors and concentrate on the core aspects. Fredrik Sjöholm discussed the assumption of rigidities in the labor market but not in the capital market. It is certainly true, according to Sjöholm, that labor might be imperfectly mobile between sectors, but the same is presumably the case also for capital: It is difficult to change sewing machines into car plants. Fukunari Kimura agreed and made an argument that capital cannot be adjusted in the short run. In fact, this is the conventional assumption in the literature and if it was to be imposed in this study, the results would turn around. Other participants discussed labor market rigidities and some argued that unemployment makes structural shifts... You do not currently have access to this content.